Subsidy eligibility in the ACA marketplace is determined primarily by what factors?

• A. Age and health status.
• B. Income and household size.
• C. Employment status alone.
• D. Citizenship status alone.

Answer: (B)

The thing being tested is how subsidies are determined in the ACA marketplace. Subsidy eligibility is driven by how much you earn relative to your household size, measured as MAGI (modified adjusted gross income) and census of household size against the federal poverty level. This relationship sets whether you qualify for premium tax credits and, in some cases, cost-sharing reductions. Health status, age, or employment status don’t determine eligibility for subsidies; age can affect plan premiums, but not whether a subsidy is available. Citizenship matters for enrollment eligibility, but the subsidy amount is still based primarily on income and household size. So, income and household size are the key factors that determine subsidy eligibility.